Itera to Sign Offshore PSA in Turkmenistan

Russian gas producer Itera expects to sign this year a production sharing agreement with Turkmenistan to develop three offshore blocks in the country, the company's CEO Vladimir Makeyev said.

"We are in final stages of talks to sign a PSA for blocks 29, 30, 31," he said, referring to the Zarit joint venture.

The joint venture between Itera, state-owned Russian companies Rosneft and Zarubezhneft, and Turkmenistan's Turkmenneft was set up back in 2002 but the production sharing agreement for three offshore blocks in the southeast Caspian Sea has not been signed yet.

One of the blocks is partially located in the Iranian section of the Caspian Sea, an unresolved issue which is believed to have held up signing of the PSA and the start of work.

When asked about the negotiations with Iran, Makeyev said: "Some of the issues are still to be coordinated."

There have been media reports that Iran may join the joint venture, but no decision has been taken yet.

Itera has recently also discussed other blocks in Turkmenistan, not only offshore but also inland. Makeyev said talks on inland blocks were still continuing.

Last week, the head of the Turkmen ministerial cabinet's geology department, Orazmukhammed Atageldiev, said Itera was among a handful of foreign companies close to signing PSAs for offshore blocks in the country.

Source: Platts 

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